The S&L Crisis Can Be Analyzed as a Principal-Agent Problem

question 52

Multiple Choice

The S&L Crisis can be analyzed as a principal-agent problem. The agents in this case,the ________,did not have the same incentive to minimize cost to the economy as the principals,the ________.

• A)politicians/regulators;taxpayers
• B)taxpayers;politician/regulators
• C)taxpayers;bank managers
• D)bank managers;politicians/regulators

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Definitions:

Report Talk

Talk focused on sharing practical or statistical information.

Conversational Ritual

Repeated and customary verbal interactions and practices that form a significant part of social communication.

Report Talk

A style of communication focusing on exchanging information, facts, and arguments, often used in formal or professional settings.

Factual and Statistical Information

Data and details based on real occurrences and quantitative measurements, used to support arguments, analyses, or research findings.